The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-08-01
CHICAGO MONEY LENDERS.
Profits F'om Small Borrowers-As
Estfc,sg Circular.

fChicngo Tribune.
The city has been prolific during
the last year or two In financial enter.
prisss appealing to men Of small
means-bsnks ESQ called which offer
high rates OF interest for deposits and
institutions that profess TO lend small
sums OF money to people who could
not got accommodations elsewhere.
One concern has Issued the following
circular:
This company har decided to help
those who wish to succeed, and there
by inaueurated q new departure for
itself and customers. Hereafter this
company will loan money In sums OF
$500 and $1,000 to reputable business
men having some Of their own, or
young men wishing 10 start In bust.
ness without chsttel mortgage or
other security than their note. The
money TO be returned In monthly In.
stallments running from twelve to
twenty four months. Shall be glad to
meet you or your friends that you can
recommend II We can help you to
succeed"
Such circulars may look very entic-
ing to persons who do not investigate
too closely but the borrower will prob.
ably fiod ttAt such loans are about az
burdensome as the favors he would
receive from q pswnbroker. The com.
pauy would ordinarily END, perhaps,
1900 TO q man who had q stock OF
goods worth $1,000 on q judgment
note, provided II could be ascer aimed
beyond doubt that there were
no other judgment notes out, or II the
noe was indoised by some responsible
peron. In case the borrower had no
merchandise to offer as q possible
security cbattel mortgage would bs
necessary. But the worst part Of the
business with moot OF these concerns
In the rate Of interest, which ranges
from 3 TO 4 per cent. a month. II, Tor
instance, $500 was borrowed on q
chattel mortgage, SIS 10 SEQ O
month would be tXacted. In
other words, II $500 was Dor
rowed for a year tho borrower
would at the end OF that time have
paid back not only the 1900, but nearly
bali % much In addition. IL would
take only two years TO pay out as
much IN interest as the loan amount
ed 10. At the rates paid banks and
reputable private lenders IL requires
from twelve to twenty-five years for
the Interest TO amount 10 40 much as
the principal. There Is no legitimate
business that will bear these heavy
rates, and anybody who borrows a, 2,
or 4 per cent. q month 10 this city,
except under very ,xradorinary CIR
cumstsnces, engaged 10 losing ven-
ture. Nothing but sons sudden mis-
I rune should ever lead one 10 avail
himself Of the offers OF theee small
monoy.lenders. IL may be set down
rs a general rule that anybody who
has good reason for negotiating q
business loan nj all can get accommo-
dations at the banks. An official OF
oue Of the leading national banks
stated yesterday that he would loan
sums Es small no $50 10 any
applicant. who would show HIS
ability 10 repay the money and the
national banks cspno, lawfully charge
over per cent interest. People who
think they could make pile OF money
II somebody would only eiye than n
start In the way Of small loan are
recommended to 20 10 banks OF recog-
nlEed standing with their applica ions.
II this loan 10 not good one and their
enterprise Ia not promising they will
be tod 90, and thus be saved trouble
and loae,